November 2011 SREC Auction Results

Posted November 1st, 2011 by SRECTrade.

SRECTrade’s November 2011 SREC Auction has completed. Below are the clearing prices at which SRECs traded this month.

November SREC Prices Energy Year Ending
State 2010 2011 2012*
Delaware - - $88.99
Maryland In-State $174.98 $200.00
Maryland Out-of-State - -
Massachusetts - $535.00**
New Jersey - $670.00 $225.00
Ohio In-State - $380.00
Ohio Out-of-State - $55.00
Pennsylvania - $10.00 -
Washington, DC $119.00 $150.00

Notes:
*Delaware, New Jersey and Pennsylvania operate on a June-May energy year.
**Massachusetts Q2 auction occurred on October 17th
Green text represents a price improvement over October, red text represents a decrease.
“-” reflects no sale, which would result if there were no matching bids and offers that cleared for a sale in the auction.

State Market Observations:

Delaware (Supply: 22.7 MW | Demand: 19.5 MW): Legislation increasing the SREC requirement went into effect this past June but the market has yet to pick up in response. Stakeholders in DE continue to work to wards a long-term SREC contract solicitation program for new facilities. This program should be approved within the next month. Meanwhile, the SREC market will likely pick up at the end of the energy year when electricity suppliers are more active.

Maryland (Supply: 30.8 MW | Demand: 26.9 MW): SRECs continue to hover around $200. The state seems on a good pace to maintain a balanced supply relative to demand. As 2011 comes to an end, a shortage of SRECs in the state, if any, will be reflected by an increase in prices at the end of the trading period in the first quarter of 2012. Out-of-state SRECs continue to be a non-factor in Maryland.

Massachusetts (Supply: 27.1 MW | Demand: 55.7 MW): Mass SREC values rose to $535 in the Q2 2011 sale on October 18th. This trend should continue as the SREC shortage becomes more apparent. The next big quarterly MA SREC auction will close on Monday January 16th. In the meantime, solar owners can offer unsold SRECs in our regular monthly auctions.

New Jersey (Supply: 448 MW | Demand: 368 MW): The 2012 market continues to rebound up to $225 from $205 last month. As more buyers become active in the 2012 market, prices should continue to correct, though the oversupply continues to grow as 18 more megawatts were added in September.

Ohio (Supply: 82.0 MW | Demand: 37.7 MW) : In-State SRECs demand dropped slightly. Activity in the out-of-state SREC market increased this month.

Pennsylvania (Supply: 146.4 MW | Demand 40.4 MW): HB 1508 was recently introduced to address the state’s SREC market. This marks the beginning of a long process to rescue the PA SREC market. Until then, SRECs will continue to bottom out.

Washington, DC (Supply: 21.4 MW | Demand: 41.9 MW): Prices continue to increase as new legislation closing the DC market borders and increasing requirements take effect on the market.

For historical pricing please see this link. The order period for the December auction will close on Wednesday, November 30, 2011 at 5:00 p.m Eastern. For more information, please visit www.srectrade.com.

Tags: , , , , , , ,

Comments are closed.